BNK Petroleum reports its best 30-day IP rate of 630 boed in Oklahoma's SCOOP

CAMARILLO, California -- BNK Petroleum Inc. has announced that the Glenn 16-2H well (100% working interest) averaged over 630 boed, of which 540 bbl are oil, for the last 30 days. The production from the well, which is located in BNK’s Tishomingo field, in the SCOOP region of Oklahoma, is currently producing over 620 boed, of which 515 bbl are oil (85%).

Commenting on the announcement, Wolf Regener, president and CEO, said: “The Glenn 16-2H well has the highest 30-day oil IP of any well that we have drilled and it is currently outperforming our possible type curve. The well is producing at an oil rate which is about 45% higher than our next highest well’s production at the 30-day mark. Our technical team believes this exceptional performance is mainly due to our latest generation frac design, as the geological data gathered while drilling this lateral looks comparable to many of our other wells.

“At the current price of oil at over $68/bbl, our incremental netbacks for this well are estimated to be approximately $37/bbl, which represents a substantial contribution to our cash flow.”

Operations update

The fracture stimulation of the previously drilled WLC 14-2H well is being scheduled and is expected to begin in mid-May. We plan to utilize a similar frac design to the Glenn 16-2H well stimulation, which includes the use of cutting edge friction reducers.

Wolf Regener commented: “The hydrocarbon shows recorded while drilling the WLC 14-2H well lateral look comparable to our best wells and we look forward to again using our latest generation frac design, as with the Glenn 16-2H well stimulation, to attempt to maximize production from the well. The WLC 14-2H location is outside of the acreage that was evaluated in our year end NI 51-101 reserve report. A successful well at this location, which is 2 mi to the east of the Glenn 16-2H well, would potentially prove up significant additional reserves, continue demonstrating the repeatability of our results and further increase our cash flow.”

The Company has commenced planning activities for the next locations to be drilled as part of the 2018 development drilling program using its operating cash flow. Concurrently, and as previously disclosed, the Company and its financial advisors continue to explore various alternatives, including options to accelerate drilling.